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Retail Brand Management UNIT III.pptx

The document discusses strategic brand management. It covers identifying and establishing brand positioning and values, planning and implementing brand marketing programs, and measuring brand performance. Specifically, it discusses determining target markets and competitors, segmentation criteria, points of parity and differentiation, and developing a brand's positioning through its associations. The goal of strategic brand management is to build, measure, and manage brand equity over time.

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Unit III Concept of Brand - Brand functions - Brand Loyalty and Equity - Brand Stretching and Extensions - Strategic Brand Management Process - Identifying and establishing brand positioning and values - Planning and implementing Brand Marketing Programs - Measuring and interpreting Brand performance.
CONCEPT OF BRAND The word "brand" derives from the Old Norse "brandr" meaning "to burn" - recalling the practice of producers burning their mark (or brand) onto their products. Brand is the "name, term, design, symbol, or any other feature that identifies one seller's product distinct from those of other sellers." Initially, branding was adopted to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot iron stamp and was subsequently used in business, marketing, and advertising. Eg: A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company.
BRAND AWARENESS  Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory.  It consists of both brand recognition and brand recall. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name.  It also ensures that customers know which of their needs are satisfied by the brand through its products.  Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it.
BRAND FUNCTIONS There are some functions of branding 1. It helps in product identification and gives 'distinctiveness' to the product. 2. Indirectly it denotes the quality or standards of a product. 3. It eliminated imitation products. 4. It ensures legal rights on the products. 5. It helps in advertising and packaging activities. 6. It helps to create and sustain brand loyalty to particular products. 7. It helps in price differentiations of products.
The use of brands has been central to marketing for more than a century. The dominant logic has been “Build a brand, and the world will beat a path to its door.” Long-standing brands such as Marlboro, Coca-Cola, Xerox, IBM, and Intel are considered to be among the world’s most valuable assets. The three primary functions of brands • NAVIGATION Brands help consumers navigate all the choices in each consumer category • REASSURANCE Brands communicate the quality of the product • ENGAGEMENT Brands use distinct imagery to create loyalty and to help consumers identify with the brand
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BRAND EQUITY A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands. The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.
BRAND LOYALTY Brand loyalty is where a person buys products from the same manufacturer repeatedly rather than from other suppliers. Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviors such as word of mouth advocacy. Customers may repurchase a brand due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior.
Paswan BRAND MANAGEMENT ISSUES Product Manager Manufacturing R&D Legal Fiscal Market Research Salesforce Publicity Purchasing Packaging Promotion Services Media Advertising Agency Distribution
Brand EXTENSION  Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category.  The new product is called a spin-off. Organizations use this strategy to increase and leverage brands.  Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. 13
Brand EXTENSION - EXAMPLES A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, T – shirts, soccer balls, basketballs, and golf equipments. Similarly the case for FAB INDIA from home furnishings and clothing to FMCG, Soaps, Detergents, Food Products, etc 14
Brand Extension – SUCCESS STORIES  Instances where brand extension has been a success are-  Wipro which was originally into computers has extended into shampoo, powder, and soap.  Mother Diary – no longer famous for Dairy Milk Only – but for diary processed items like Ice-Creams, Yogurt, etc BRITANNIA, TATA GROUP, ITC GROUP, UNILEVER GROUP – BRAND EXTENSION FOR ENTIRE PRODUCT PORTFOLIO 15
Brand Extension- FAILURE STORIES Instances where brand extension has been a failure are-  In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about.  Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away from its niche, there was little success. When it experimented with fizzy fruit drink “Oranjolt”, the brand bombed even before it could take off.  Oranjolt was a fruit drink in which carbonates were used as preservative. It didn’t work out because it was out of synchronization with retail practices. 16
17 STRATEGIC BRAND MANAGEMENT • Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. • The strategic brand management process is defined as involving four main steps: 1) Identifying and establishing brand positioning and values 2) Planning and implementing brand marketing programs 3) Measuring and interpreting brand performance 4) Growing and sustaining brand equity
18 STRATEGIC BRAND MANAGEMENT PROCESS Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization KEY CONCEPTS STEPS Grow and Sustain Brand Equity Identify and Establish Brand Positioning and Values Plan and Implement Brand Marketing Programs Measure and Interpret Brand Performance
Identifying and establishing brand positioning • Brand positioning is at the heart of marketing strategy. • Brand positioning : as the “act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds. • Deciding on a positioning requires determining: 1. Who the target consumer is. 2. Who the main competitors are. 3. How the brand is similar to these competitors (points-of-parity) 4. How the brand is different from these competitors.(points-of- difference) 19
Target Market • Identifying the consumer target is important because different consumers may have different brand knowledge structures and thus different perceptions and preferences for the brand. • A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product. In other words, a market consists of all consumers with sufficient motivation, ability, and opportunity to buy a product. 20
Market segmentation • Market segmentation involves dividing the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior and thus require similar marketing mixes. • Defining a market segmentation plan involves tradeoffs between costs and benefits. • Possible segmentation bases for consumer and industrial markets • Descriptive or customer-oriented (what kind of person or organization is the customer) • Behavioral or product-oriented (how the customer thinks of or uses the brand or product) clearer strategic implications. 21
Criteria : Segmentation and Targeting • Identifiability : Can segment identification be easily determined? • Size : Is there adequate sales potential in the segment? • Accessibility : Are specialized distribution outlets and communication media available to reach the segment? • Responsiveness : How favorably will the segment respond to a tailored marketing program? 22 Accessibility Size Identifiability Responsiveness
Nature of competition  Not to be too narrow in defining competition  Often, competition may occur at the benefit level rather than the attribute level. Ex: Baskin-Robbins VS frozen coffee drink, blended frozen-fruit (Starbucks, TCBY, Daily Queen)  Recognizing the nature of different levels of competition has important implications for the desired brand associations. Competitive frame of reference • Once the appropriate competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, the basis of the positioning itself can be defined. • Arriving at the proper positioning requires establishing the correct points-of-difference and point-of-parity associations. 23
Points-of-Difference Associations • Points-of-Difference (PODs) are attributes or benefits that customer strongly associate with a brand, positive evaluate, and believe that they could not find to the same extent with a competitive brand. • Brand associations can be broadly classified in terms of either functional, performance-related considerations or abstract, imagery-related considerations. Points-of-Parity Associations • Points-of-parity (POPs) are those associations that are not necessarily unique to the brand but may in fact be shared with other brands. 1. Category points-of-parity are those associations that consumers view as being necessary to be a legitimate and credible offering within a certain product or service category. 2. Competitive points-of-parity are those associations designed to negate competitors’ point of difference. 24
Points of Parity VS Points of Difference • To achieve a point of parity on a particular attribute or benefit, a sufficient number of customers must believe that the brand is “good enough” on that dimension. • There is a “zone” or “ range of tolerance or acceptance” with POPs • Points of parity are thus easier to achieve than points of difference. 25
Positioning • The optimal competitive brand positioning are 1. Defining and communicating the competitive frame of reference. 2. Choosing and establishing points of parity and points of difference. 1. Defining and communicating the competitive frame of reference  A starting point is determine category membership which a brand competes.  Choosing to compete in different categories often results in different competitive frames of reference and thus different POPs and PODs.  The preferred approach to positioning is to inform consumers of a brand’s membership before stating its point of difference in relation to other category members. 26
2. Choosing and establishing points of parity and points of difference.(1) • Choosing Points-of-Parity Three main ways to convey a brand’s category membership : • Communicating category benefits. • Comparing to exemplars • Relying on the product descriptor 27
2. Choosing and establishing points of parity and points of difference.(2) • Choosing Points-of-Difference The two most important considerations : • Desirability criteria : 3 keys • Relevance • Distinctiveness • Believability • Deliverability criteria : 3 keys • Feasibility (actual or potential ability of the product to perform at the level stated) • Communicability • Sustainability 28
Defining and establishing brand values • Core brand values are those set of abstract associations (attributes and benefits) that characterize the 5 to 10 most important aspects or dimensions of a brand. • First step is to create a detailed mental map of the brand.A mental map accurately portrays in detail all salient brand associations and responses for a particular target market.(When do you think of this brand,what comes to mind?) • Second step, brand associations are grouped into categories according to how they are related. Core brand value 29
Planning & Implementing Brand Marketing Program
Choosing Brand Elements to Build Brand Equity Choosing Brand Elements Criteria for Choosing Brand Elements : The following criteria should be met to choose relevant brand elements such as: • Memorability – Easily Recognized, Easily Recalled • Meaningfulness – Descriptive, Persuasive • Likability – Fun and Interesting, Aesthetically Pleasing • Transferability – Within Cross Product Categories, Across Geographical Boundaries and Cultures • Adaptability – Flexible, Updateable • Protectability – Legally Protected, Competitively Protected Criteria for
Designing Marketing Programs to Build Brand Equity Designing Marketing Programs to Build Brand Equity Planning & Implementing Brand Marketing Programs Product Strategy An efficient product strategy would ensure that the product remains updated with the latest features, technology and enhancements and has something extra to offer to the customers. Pricing Strategy An efficient pricing strategy helps companies to best position themselves within the market. Designing Marketing Programs to Build Brand Equity Channel Strategy Channel Strategy Product Strategy Pricing Strategy It involves developing go-to-market plans, educating channel marketers or middlemen about products or services, and motivating the members of the marketing channel to promote products and services. Hence, marketing and sales alignment is critical to an effective channel strategy.
Measuring and interpreting Brand performance.
Brand Equity Measuring Sources of Brand Equity: Capturing Customer Mind-Set There Measuring &are two methods that are used for measuring the sources of brand equity or to Interpreting capture the customer's mind-set, which are as Brand follows: Performance Measuring • Qualitative Research Techniques Comparative Outcomes of Methods • Quantitative Research Techniques Brand Equity Let us look at each one in detail. Quantitative Research Techniques Brand Value Chain Developing Brand Equity Measurement & Management Establishing a System Brand Equity Designing Brand Tracking Studies Management System Holistic Methods